Saudi Arabia has established itself as a regional hub for electricity connectivity, acting as a power heartbeat for the Middle East and beyond.
This has been evident in Iraq’s strong interest in accelerating its electricity interconnection project with the Kingdom, underscoring the growing trust in Saudi Arabia’s power grid to serve as the baseline stabilizer for regional energy security.
A Power Corridor
The Big Picture: Iraqi Electricity Minister Ali Saadi Wahib said that his government prioritizes the electricity interconnection project with Saudi Arabia, as part of Baghdad’s strategy to expand its regional partnerships and diversify electricity sources.
The Deep Dive: In remarks to Asharq Bloomberg, Wahib noted that the planned project has a capacity of 1,000-2,000 megawatts (MW). It involves establishing transmission lines and stations to import electricity from Saudi Arabia. The project will be accounted for in the 2027 budget allocation.
State of Play: The foundations of this project were laid in 2023 with funding from the Saudi Fund for Development (SFD). The bilateral project extends from Arar City north of the Kingdom to Yusufiyah area southwest of Baghdad.
Backstory: Iraq’s broader diversification push includes interconnection projects with Türkiye (600 megawatts), Jordan (500 megawatts), and an underway project with the Gulf Cooperation Council (GCC) countries (600 megawatts).
Saudi Arabia as an Electricity Hub
In line with the objectives of Vision 2030, Saudi Arabia has set an ambitious target of generating 50% of its electricity from renewable energy by the end of the decade, thereby reaching 100-130 gigawatts (GW) of renewable energy capacity.
Between the Lines: The Kingdom operates one of the most powerful and rapidly expanding electrical infrastructures in the Middle East, acting as the central hub for regional grid interconnection. The surge in mega-solar projects creates a natural day-time power surplus perfect for regional export.
- The Saudi Electricity Company (SEC) currently manages a massive network of over 92,500 circular kilometers of transmission lines across the Kingdom.
- Under Saudi Arabia’s national infrastructure strategy, this grid will expand to 160,000 kilometers of transmission lines by the end of the decade.
- The expansion includes the deployment of 9 brand-new, High-Voltage Direct Current (HVDC) lines, engineered specifically to move heavy electrical loads seamlessly across internal regions and into neighboring countries.
- Mega-scale installations like the 5 GW Sudair Solar PV plant generate a substantial daytime power surplus.
- This combination of low-cost, massive domestic generation capacity and advanced HVDC infrastructure gives Saudi Arabia the unique capability to serve as the primary balancing hub for regional, cross-border electrical grids.
Mega Interconnection Projects
The Iraqi interconnection project is part of Saudi Arabia’s broader, multi-continental grid expansion strategy that positions the Kingdom as an electrical hub linking Asia and Africa, with the possibility of further expansion into Europe.
GCC Electricity Interconnection
Headquartered in Dammam and managed by the GCC Interconnection Authority (GCCIA), the GCC Interconnection grid serves as a high-voltage backbone linking the national networks of Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the UAE.
How it Works: While each nation operates its own independent grid, the interconnection allows for the real-time exchange of electricity to manage emergencies, absorb summer demand spikes, bridge maintenance gaps, and monetize surplus power.
The Strategic Payoff:
- Enhanced Security: Instant mutual support during grid emergencies.
- Economic Efficiency: Reduced operating and reserve costs across the board.
- System Reliability: Maximum uptime and smoother power distribution.
Looking Ahead: In early February 2026, the GCCIA embarked on the implementation of a direct interconnection project to link Oman to its network, further boosting the operational flexibility of the Gulf grid and enhancing the integration of Gulf and regional energy networks. Furthermore, the GCC-Iraq interconnection project reached 94% completion in May 2026.
Saudi-Egypt Electricity Interconnection Project
The 3-gigawatt Saudi-Egypt interconnection project has entered its final testing phase, promising to boost power-grid integration across the Middle East, Africa, Asia, and Europe. It will leverage the difference in peak demand hours between the two countries, improving grid stability, increasing generation efficiency, and reducing fuel consumption. The project is considered the first of its kind in the Middle East in terms of scale.
By the Numbers:
- 3,000 MW: Total power exchange capacity, linking the two largest electrical grids in the Arab world.
- 1,350 km: Total length of the infrastructure corridor, spanning overhead transmission lines and deep-water submarine cables across the Gulf of Aqaba.
- 3: Mega high-voltage converter stations anchoring the project: two strategically located in eastern and northwestern Saudi Arabia, and one in Badr City, east of Cairo.
